Worked Estimates and Checklists
Do your own books, hire a bookkeeper or use a full-service firm? A cost comparison
Compare the true cost of DIY bookkeeping, an independent bookkeeper and a full-service accounting firm for a Canadian corporation, including the value of your own time.
Doing your own corporate bookkeeping is cheapest on paper, but it is only cheaper overall when your transaction volume is low, you reconcile every month, and your time is worth less than a bookkeeper's rate. Once you count the hours you spend, the year-end clean-up the accountant bills if your books are not right, and the risk of sales tax or shareholder loan errors, an independent bookkeeper or a hybrid setup often costs about the same and produces better records. A full-service firm costs the most but gives one point of accountability. The comparison below shows how to work it out for your own corporation.
This guide is part of the annual accounting cost estimate guide. All figures are illustrative.
Four ways to organize the work
| Setup | Who does monthly books | Who does year end and T2 | Best fit |
|---|---|---|---|
| Full DIY | Owner | Owner, using certified tax software | Dormant or very simple corporations; owners with accounting training |
| DIY plus CPA | Owner | CPA firm | Low volume, organized owners |
| Bookkeeper plus CPA | Independent bookkeeper | CPA firm | Steady volume, owners who want monthly reports |
| Full-service firm | Firm staff | Same firm | Owners who want one provider and one bill |
A fifth option, the hybrid, mixes these: the owner approves bank feeds and captures receipts, a bookkeeper reviews monthly, and the CPA does year end. It is often the best value for growing corporations.
How to compare the true cost
For each setup, add up:
- Fees paid to bookkeepers and accountants.
- Your own hours x the value of your time. Use what you could earn in that time, or what you would pay someone else; be realistic.
- Expected clean-up fees at year end if the books need fixing.
- Software and subscriptions.
- Risk cost: penalties, interest and reassessments from errors. Hard to estimate, but not zero.
Worked comparison: illustrative consulting corporation
An illustrative one-person consulting corporation with 120 transactions a month, quarterly GST/HST and no employees other than the owner. The owner bills clients at $120 an hour but values personal admin time at $60 an hour, since not every saved hour would be billed.
| Cost line | DIY plus CPA | Bookkeeper plus CPA | Full-service firm |
|---|---|---|---|
| Owner hours a year | 70 (books, reconciliations, GST/HST) | 15 (receipts, questions) | 10 |
| Owner time at $60 | $4,200 | $900 | $600 |
| Bookkeeping fees | $0 | 4 h x 12 x $65 = $3,120 | Included |
| GST/HST returns | Done by owner | 4 x 1.5 h x $65 = $390 | Included |
| Year-end compilation and T2 | $1,500 | $1,350 | Included |
| Expected clean-up at year end | 6 h x $130 = $780 | $0 | $0 |
| Full-service monthly fee | — | — | $550 x 12 = $6,600 |
| Software | $480 | $480 | Included |
| Total including owner time | $6,960 | $6,240 | $7,200 |
| Cash fees only | $2,760 | $5,340 | $6,600 |
Arithmetic for DIY: $4,200 + $1,500 + $780 + $480 = $6,960. Bookkeeper: $900 + $3,120 + $390 + $1,350 + $480 = $6,240. Full-service: $600 + $6,600 = $7,200.
On cash alone, DIY wins by a wide margin. Once the owner's time is counted, the bookkeeper setup is cheapest and the three options are within about $1,000 of each other. Change the value of your time and the answer changes: at $30 an hour, DIY becomes clearly cheapest; at $100 an hour, it becomes the most expensive. Use the fee estimator for the professional part and add your own time separately.
When DIY works well
- Few transactions, one bank account and one card
- No employees other than yourself, or a payroll service handles them
- You reconcile monthly, not at year end
- You understand GST/HST codes and keep receipts with supplier registration numbers
- You keep business and personal spending strictly separate
- A CPA still prepares or at least reviews the year end and T2
Warning signs that DIY is costing you
- The accountant sends a long list of questions every year
- Your clean-up fee grows each year
- You are filing GST/HST returns late or estimating them
- You do not know your shareholder loan balance
- You spend evenings on bookkeeping instead of billable work or rest
These are also the most common causes of the problems described in corporate accounting mistakes.
Doing the T2 yourself
Preparing your own T2 with certified software is legally possible, and the return must be filed electronically for tax years starting after 2023. The fee saved for a simple corporation is a few hundred dollars. The risk is in the schedules: the small business deduction, associated corporations, capital cost allowance, dividends and refundable taxes. If you are unsure about any of these, the saving is not worth it. See T2 preparation cost.
How automation shifts the comparison
Bank feeds and receipt capture cut DIY hours, which makes DIY or the hybrid model more attractive. They also cut a bookkeeper's hours, which should lower that fee. Test your own case in the automation payback example.
If you decide to hire help, use the accountant selection checklist and read the engagement letter guide before you sign.
Frequently asked questions
Does the CRA care who does my books?
The CRA requires adequate records and correct returns; it does not require a professional. The corporation and its directors remain responsible for filings and remittances.
Can a bookkeeper file my GST/HST returns?
Yes, with proper authorization through the CRA's representative services (or Revenu Québec's in Quebec).
Is a full-service firm worth it for a small corporation?
It can be if you value predictability and a single accountable provider. Check the volume limits and what triggers extra charges.
Sources
- Canada Revenue Agency — record-keeping, representative authorization and certified T2 software
- Revenu Québec — authorizing a representative in Quebec
- Canada Business Network — government help for small business owners
